MSTC Limited , a leading e-commerce service provider, has reported robust financial results for the first half of fiscal year 2026, driven by significant growth in its e-commerce segment and strategic expansion into new digital platforms.

Financial Highlights

The company's performance for H1 FY26 showcases impressive growth:

The company's e-commerce segment has been the primary driver of growth, with revenue increasing by 18.47% year-over-year.

Strategic Developments

MSTC Limited has secured several significant contracts and initiatives:

1. EPR Certificate Trading Platform: Awarded by the Central Pollution Control Board (CPCB), this platform aims to regulate and facilitate the trading of Extended Producer Responsibility (EPR) certificates.

2. Gold Bullion Import Allocation Platform: Developed for the Directorate General of Foreign Trade (DGFT), this platform will manage the allocation of tariff rate quotas for gold bullion imports.

3. Long-term Agreement with Syama Prasad Mookerjee Port: A 30-year agreement to provide e-commerce services for leasing port property, potentially generating substantial long-term revenue.

4. E-auction Services Expansion: New contracts secured with the Government of Chhattisgarh for sand mining block auctions and the Government of Karnataka for liquor shop license auctions.

5. Kendriya Police Kalyan Bhandar Portal: Development of a software application to manage operations for central police force canteens.

Future Outlook

MSTC Limited is positioning itself for future growth through various initiatives:

• Travel Portal Development: The company plans to launch a travel portal initially focused on the government sector, with potential expansion to private and B2C segments.
• Data Center Expansion: Ongoing efforts to strengthen data infrastructure, with potential for future monetization of excess capacity.
• Upkaran Portal: Recently launched platform for equipment leasing and purchasing, currently in the onboarding and acclimatization phase.

Mr. Manobendra Ghoshal, Chairman and Managing Director of MSTC Limited, commented on the results, stating, "We have sustained a good revenue trend both on year-on-year as well as on sequential basis for the quarter. We are working on that. We have also been selected by the Government of Chhattisgarh for e-auction of sand mining blocks, the Government of Karnataka for auction of liquor shop licenses etc."

The company's focus on diversifying its digital offerings and securing long-term contracts positions it well for sustained growth in the e-commerce and digital services sector.

MSTC Limited , a state-owned e-commerce company, has reported strong financial performance for the first half of fiscal year 2026, while simultaneously addressing regulatory compliance issues.

Financial Highlights

For the half year ended September 30, 2025, MSTC Limited posted impressive results:

• Total income rose to ₹1,959.62 crore, up 9.31% from ₹1,792.71 crore in the same period last year.
• Profit before tax increased by 12.81% to ₹1,257.90 crore, compared to ₹1,114.97 crore in H1 FY2025.
• Net profit after tax grew by 11.96% to ₹934.72 crore, up from ₹834.81 crore in the previous year.

The company's e-commerce segment continued to be the primary revenue driver, contributing ₹1,871.20 crore to the total income, marking an 18.47% increase from the previous year.

Segment Performance

The e-commerce segment showed robust growth, while the marketing segment experienced a decline. The company's 'others' category, though small, saw significant percentage growth.

Regulatory Compliance Issues

Despite the strong financial performance, MSTC Limited faced regulatory challenges. The company received fines from the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) for non-compliance with SEBI listing regulations during the quarter ended June 30, 2025. The violations included:

1. Failure to appoint a woman independent director
2. Non-compliance with the constitution of various committees, including:
   • Audit committee
   • Nomination and remuneration committee
   • Stakeholder relationship committee
   • Risk management committee

The company's board noted that three independent directors were appointed by the administrative Ministry during June 2025, addressing some of these issues. MSTC emphasized that as a Government Company, the power to appoint Independent Directors is vested with the President of India through the administrative Ministry, not with the Board or Company itself.

Remedial Actions

MSTC has taken steps to address the compliance issues:

1. The company is now compliant with the requirement for a woman independent director.
2. Various committee compositions have been brought into compliance.
3. The Board has requested the Ministry of Steel to expedite the appointment of the required number of Independent Directors.
4. MSTC has asked stock exchanges to waive the fines, citing that director appointments are beyond the company's control.

Outlook

While MSTC Limited has demonstrated strong financial growth, the regulatory compliance issues highlight the challenges faced by state-owned enterprises. The company's ability to address these concerns while maintaining its growth trajectory will be crucial for its future performance and investor confidence.

As MSTC continues to focus on its core e-commerce business, which has shown significant growth, the company may need to reassess its marketing segment strategy given the decline in that area. The substantial increase in the 'others' category, albeit from a small base, may also warrant attention as a potential area for future growth.

Investors and stakeholders will likely keep a close eye on how MSTC balances its growth initiatives with regulatory compliance in the coming quarters.